Guideline on Prohibiting Claim of Criminal Fines and Tax Surcharge as Expenses

Guideline on Prohibiting Claim of Criminal Fines and Tax Surcharge as Expenses

Guideline on Prohibiting Claim of Criminal Fines and Tax Surcharge as Expenses

6 March 2017 /

On 9 March 2017, The Board of Taxation issued an announcement of the Board’s ruling No. 40/2560 re: Tax fines and Surcharges and Criminal Fines under Section 65 quarter (6) of The Revenue Code for clarity and consistency with the judgment of The Supreme Court that ruled on fine and/or surcharge, criminal fine, income tax of a company or juristic partnership.

The Board of Taxation ruled that the fine and/or surcharge, criminal fine shall not be claimed as expenses by a company or juristic partnership. This ruling shall also repeal the previous ruling and be used as the guideline in the future.